Name ______________________________________ Per _____ Date _________________
Demand Situations
For each of the following newspaper headlines, decide whether there will be a change in demand
for beef. If there was a change in demand, decide which of the following factors contributed to the
change:
a. change in consumer expectations
b. change in consumer tastes and preferences
c. change in market size
d. change in income
e. change in the price of a substitute good
f. change in the price of a complementary good
1. Experts agree that drought will cause the price of beef to rise sharply in June. (Consumer
Expectations)
2. Millions of immigrants swell the U.S. population. (Market Size)
3. Pork prices plummet as pigs sent to market early. (Substitute Good)
4. Surgeon General warns that eating beef can be hazardous to one’s health. (Consumer
Tastes/Preferences)
5. Beef prices fall; consumers buy more. (Income)
6. Charcoal shortage threatens Memorial Day cookouts. (Complementary Good)
7. Real income for Americans drops fourth month in a row. (Income Effect)
8. Lamb and chicken prices rise dramatically; further increases predicted. (Substitute Good)
9. Minimum wage raised to $6.50 per hour. (Income Effect)
10. Regular consumption of hamburger found to be major factor in preventing tooth decay and
increasing sex appeal. (Change in Preferences)